Monday, August 25, 2008

save the blue collar worker help save the economy

With the economy doing badly for most of the America right now, many states and cities are trying to find ways to bring jobs and business into their area.

Most of the time the focus is on bringing in higher paying/higher skilled jobs.

But looking at the states and cities that where hit the hardest by economic down turn, focusing on things like tech jobs may not be best place to start to focus on. This is not to say there shouldn't be focus on these jobs (there should) but giving that most of the cities that are doing the poorest right now tend to be in the rust belt. And most of the jobs lost in that area where blue collar. Focusing on bringing in jobs that demand skills they don't have will hardly help them.

Because their jobs are gone and nothing similar replaces them the ex-blue collar worker is left either not finding a new job or finding one that doesn't pay as much at their old job.

In either case that means they now have less money to spend in the economy or in taxes that they used to, and the blue collar Joe and Jane make up a big percentage of are work force, so that a large percentage of the American populous not making as much money as they used to.

So it makes sense for local governments to have policy that will make their area more appealing for companies to place blue collar jobs there.

For example tax credits to companies that bring manafraction or other blue collar jobs into their city/state.

it not as sexy as say trying to bring in high tech jobs and Hollywood to your state (like they are trying to do in MI) but you you will lower unemployment, increase your tax base and make sure the average Joe now has a OK job.

in other words it will give part of the base needed to make the states/cities that are looking bad right now, look good.

for example the increase tax base alone, should bring in enough money for those areas to improve their schools. if the local school board is smart they will make sure the kids coming up will learn the skills they need for the high skilled jobs of not only now but the future.

And business will be more willing to come into your area, either because of the educated pool now in the area or just because there are people with more spending money then they use to have.

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